Defense Acquisition University Earned Value Management ‘Gold Card’

1. Contract Price Profit / Fees TAB NCC CBB AUW OTB OVERRUN PMB Management Reserve Undistributed Budget Control Accounts Summary Level Planning Packages Work Packages Planning Packages Defense Acquisition University Earned Value Management ‘Gold Card’ EAC TAB Management Reserve BAC PMB Schedule Variance Cost Variance $ ACWP TERMINOLOGY NCC Negotiated Contract Cost Contract price less profit / fee(s) AUW Authorized Unpriced WorkWork contractually approved, but not yet negotiated / definitized CBB Contract Budget BaseSum of NCC and AUW OTB Over Target BaselineSum of CBB and recognized overrun TAB Total Allocated BudgetSum of all budgets for work on contract = NCC, CBB, or OTB BAC Budget At Completion Total budget for total contract thru any given level PMB Performance Measurement Baseline Contract time-phased budget plan MR Management Reserve Budget withheld by Ktr PM for unknowns / risk management UB Undistributed Budget Broadly defined activities not yet distributed to CAs CA Control Account Lowest CWBS element assigned to a single focalpoint to plan & control scope / schedule / budget WP Work Package Near-term, detail-planned activities within a CA PP Planning Package Far-term CA activities not yet defined into WPs BCWS Budgeted Cost for Work ScheduledValue of work planned to be accomplished = PLANNED VALUE BCWP Budgeted Cost for Work PerformedValue of work accomplished = EARNED VALUE ACWP Actual Cost of Work PerformedCost of work accomplished = ACTUAL COST EAC Estimate At Completion Estimate of total cost for total contract thru any given level; may be generated by Ktr, PMO, DCMA, etc. = EACKtr / PMO / DCMA LRE Latest Revised Estimate Ktr’s EAC or EACKtr SLPP Summary Level Planning Package Far-term activities not yet defined into CAs TCPI To Complete Performance Index Efficiency needed from ‘time now’ to achieve an EAC EVM POLICY: EVMS in accordance with ANSI/EIA-748 is required for cost or incentive contracts, subcontracts, intra-government work agreements, & other agreements valued >$20M (Then-Year $). EVMS is discouraged on Firm-Fixed Price, Level of Effort, & Time &Material efforts regardless of dollar value. EVMS contracts > $50M (TY $) require that the EVM system be formally validated by the cognizant contracting officer. DoDI 5000.2, Table E3.T2 . Additional Guidance in Defense Acquisition Guidebook & Earned Value Management Implementation Guide (EVMIG 2005) EVM CONTRACTING REQUIREMENTS: DFAR Clauses - 252.234-7000 for solicitations and 252.234-7001 for contracts Contract Performance Report – DI-MGMT-81466 * 5 Formats (WBS, Organization, Baseline, Staffing & Explanation) Integrated Master Schedule – DI-MGMT-81650 * Integrated Baseline Review (IBR) - Mandatory for all EVMS contracts > $20M * See the EVMIG 2005 for CPR and IMS tailoring guidance. BCWS BCWP Time Now Completion Date time VARIANCESFavorable is Positive, Unfavorable is Negative Cost Variance CV = BCWP – ACWP CV % = (CV / BCWP) *100 Schedule Variance SV = BCWP – BCWS SV % = (SV / BCWS) * 100 Variance at Completion VAC = BAC – EAC PERFORMANCE INDICESFavorable is > 1.0, Unfavorable is < 1.0 Cost Efficiency CPI = BCWP / ACWP Schedule Efficiency SPI = BCWP / BCWS OVERALL STATUS % Schedule = (BCWSCUM / BAC) * 100 % Complete = (BCWPCUM / BAC) * 100 % Spent = (ACWPCUM / BAC) * 100 ESTIMATE AT COMPLETION# EAC = Actuals to Date + [(Remaining Work) / (Efficiency Factor)] EACCPI = ACWPCUM + [(BAC – BCWPCUM) / CPICUM ]= BAC / CPICUM EACComposite = ACWPCUM + [(BAC – BCWPCUM) / (CPICUM* SPICUM)] TO COMPLETE PERFORMANCE INDEX (TCPI)# TCPIEAC = Work Remaining / Cost Remaining = (BAC – BCWPCUM)/ (EAC – ACWPCUM) # To Determine Either TCPI or EAC; You May Replace BAC with TAB EVM Home Page = https://acc.dau.mil/evm DAU POC: (703) 805-5259 (DSN 655) eMail Address: EVM@dau.mil Revised Mar 2005